Itac has invited comment on the proposed increase in the ‘General’ rate of customs duty on certain aluminium plates, sheets, strips and foil products classifiable under tariff heading 7606 and 7607 from free of customs duty to the World Trade Organisation (WTO) bound rate of customs duty of 15% ad valorem.
The application was lodged by Hulamin Operations (Pty) Ltd, Pietermaritzburg, who reasoned that (i) Imported sheet, plate and foil products into the local SACU market have been increasing in volumes over the past few years and the result is that Hulamin’s share of the market is declining; (ii) Hulamin’s domestic sales are being progressively displaced by lower priced imports of high volume products. Hulamin has resorted to manufacturing a wide range of low volume products which negatively affects any potential to leverage economies of scale; (iii) In 2013, the company was forced to restructure its operations and the restructuring resulted in a reduction of 211 employees which represents a 10% reduction in of its workforce; (iv) Hulamin’s international competitors in countries such as Brazil, China, India and Russia enjoy duty protection in their domestic markets; and (v) Hulamin’s over reliance on export sales result in lower profit margins because of escalating outbound logistic costs.
Comment is due 09 October 2015.
